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Unplug the bread machine & remove the bread pan.
Soften the butter in a microwave.
Pour the milk & butter into the bread pan and then add the other ingredients (including the cup of cheese). Place the bread machine yeast in last and the yeast should not touch the liquid or salt.
Place the bread pan (with ingredients) back into the unplugged bread machine.
Plug in the bread machine. Enter the correct settings (basic, light color & 1.5 or 2 lb) and press the 'start' button.
Optional: After the FINAL kneading cycle and BEFORE the baking cycle commences, sprinkle a little extra shredded cheese on top of the dough.
When the bread machine has finished baking the bread, unplug the bread machine and remove the bread pan.
Remove the bread from the bread pan and place it on a cooling rack.